Crude surges after Iran attacks on US forces in Iraq; Asia stocks slump

SINGAPORE (ICIS)–Crude oil prices rose to their highest levels in months on Wednesday while Asian petrochemical shares plunged after Iran’s attacks on US forces in Iraq with ballistic missiles.

At 03:30 GMT, ICE Brent crude was up by $1.01/bbl at $69.28/bbl. The international benchmark touched a high of $71.75/bbl earlier in the session.

US WTI NYMEX crude was up by 81 cents at $63.52/bbl after reaching a session high of $65.65/bbl earlier.

Iranian state TV said that the country’s Islamic Revolutionary Guards Corps had confirmed that they launched the missiles to retaliate for the US killing of top Iranian General Qassem Soleimani.

US President Donald Trump in his latest post on Twitter said that the assessment of casualties and damages were still ongoing.

“All is well! Missiles launched from Iran at two military bases located in Iraq. Assessment of casualties & damages taking place now,” he said.

“So far, so good! We have the most powerful and well equipped military anywhere in the world, by far! I will be making a statement tomorrow morning,” Trump added.

Iranian Foreign Minister Javad Zarif earlier on Wednesday said in a Twitter post that Iran “took and concluded proportionate measures in self defense”.

“We do not seek escalation or war, but will defend ourselves against any aggression,” he added.

Shares of petrochemical companies in Asia slumped, tracking the plunge in regional bourses, following news of the attacks in which 13 rockets hit the Al Asad Airbase, which hosts US forces in western Iraq.

According to media reports, there were no US casualties in Iran’s attacks in Iraq, with only Iraqi casualties confirmed.

In Japan, Asahi Kasei was down 3.39% and Mitsui Chemicals fell 3.11% as the benchmark Nikkei 225 Index was down 2.30%.

In Hong Kong, Sinopec Shanghai Petrochemical was down by 1.27%, tracking the 0.74% drop in the key Hang Seng Index.

In South Korea, LG Chem and SK Innovation slumped by 2.25% and 5.54% respectively, with the Korea Stock Exchange KOSPI Index down 1.16%.

In Thailand, PTT Global Chemical fell by 0.84% while Indorama Ventures Ltd dropped by 4.51%.

The US Federal Aviation Administration following the attacks said that it was banning US-registered carriers from flying over Iraq, Iran and the Gulf.

“The (FAA) issues Notices to Airmen tonight outlining flight restrictions that prohibit US civil aviation operators from operating in the airspace over Iraq, Iran and the waters of the Persian Gulf and the Gulf of Oman,” it said in a statement.

“The FAA will continue closely monitoring events in the Middle East.”

(Image credit: Photo by HO/AP/Shutterstock)

(Updates throughout)

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